Once a quarter, Pepperdine University’s Graziadio School of Business and Management and Dun & Bradstreet poll small and medium-sized businesses across the nation to learn more about those companies growth and access to capital. Overall, the Q1 2015 PCA Index findings revealed that small and medium sized businesses surveyed are still optimistic about their growth prospects, though almost half of small businesses feel their ability to hire is restricted. Here are some additional highlights*:
- 58 percent of small and medium-sized businesses surveyed nationwide are planning to hire in the next six months.
- BUT 47 percent of small businesses feel like their ability to hire is restricted.
- Of business owners surveyed with less than $5 million in revenue, 54 percent say their growth opportunities are restricted.
- Over one-third (36%) of small businesses with <$5M in revenue used personal assets.
- Half of the businesses that applied for a New York small business loan actually received one, which is higher than the national average of 41 percent.
- Sixty-three percent of New York businesses surveyed feel their growth opportunities are restricted, compared to 53 percent nationally, and 53 percent feel their ability to hire is restricted, compared to 46 percent nationally.
- 32 percent of businesses in New York used personal assets, which is slightly lower than the national average of 35 percent.
- 31 percent of businesses surveyed that applied for a small business loan in California actually received one. Nationwide, the average success rate is 41 percent.
- California small businesses are feeling more restricted than the rest of the nation: 59 percent of California small businesses surveyed feel their growth opportunities are restricted, compared to only 53 percent nationally, and 49 percent feel their ability to hire is restricted, compared to only 46 percent nationally.
- One-third of California small businesses had to rely on their personal assets to fund their businesses needs, which is slightly lower than the national average of 35 percent.
- Florida small business loans are awarded below the national rate, despite the state having higher rates of planned growth. Only 33 percent of businesses who applied in Q1 2015 were awarded a Florida small business loan, compared to 41 percent nationally.
- Loans for Florida small businesses are in short supply, and it’s causing many small businesses to feel restricted: 54 percent of those surveyed feel their growth opportunities are restricted and 46 percent feel their ability to hire is restricted as well.
- Florida small businesses are using personal assets at a rate higher than the national average: 40 percent of small businesses in Florida used personal assets to fund business growth, compared to the national average of 35 percent.
- Compared to the national rate, Texas small business loans are awarded less often, with only 37 percent of those who applied actually receiving a loan, compared to 41 percent nationally
- 45 percent of Texas businesses are in need of financing due to experienced growth, and 52 percent of businesses are in need of financing due to planned growth.
- Over half of Texas small businesses surveyed feel their growth opportunities are restricted (54 percent) and 50 percent feel their ability to hire is restricted, too.
- One-third of Texas small businesses had to dip into personal assets to fund business growth.
PCA in the News:
For more details, click the images below for the national and each state’s full infographic. To read the entire study, you can find the results report here.
*Pepperdine Private Capital Index: PCA Index Survey Responses. First Quarter 2015. Survey results based on 2,469 national responses. ©Dun & Bradstreet, Inc. 2016. All rights reserved.